Anonymous wrote:Anonymous wrote:Jesus, they're predicting bank runs on Monday. What is this, 1929?
Hold on to your butts folks. This could get ugly quick. What company in their right mind who does business with smaller/regional banks would keep funds over $250k in them now that they're watching SVB fail? It is scary to think how this could spread and cause a nation wide bank run.
That’s why depositors need to be made whole. It’s fine if equity holders in SVB lose out. But if people don’t have faith in smaller banks, this could spiral out of control extremely quickly.
Anonymous wrote:Jesus, they're predicting bank runs on Monday. What is this, 1929?
Hold on to your butts folks. This could get ugly quick. What company in their right mind who does business with smaller/regional banks would keep funds over $250k in them now that they're watching SVB fail? It is scary to think how this could spread and cause a nation wide bank run.
Anonymous wrote:Jesus, they're predicting bank runs on Monday. What is this, 1929?
Hold on to your butts folks. This could get ugly quick. What company in their right mind who does business with smaller/regional banks would keep funds over $250k in them now that they're watching SVB fail? It is scary to think how this could spread and cause a nation wide bank run.
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:So there are all of these libertarians etc calling on the Fed/FDIC to basically take over and secure the bank.
Keep in mind, this i only happening because Trump totally gutted regulations that would have prevented this from happening. So we are going to get a massive bailout for Silicon Valley Bank and yet people complain about a few thousand dollars in bailouts for student loans.
For one, the FDIC already took over the bank around 24 hours ago
Two, this is not caused by Trump gutting regulations. The cause was interest rate risk- recall people deposit money at banks and they turn around and lend money, in this case in the form of MBS and treasuries. The fed kept interest rates too low for too long and then they hiked rates precipitously, which caused huge losses for the bank on those securities that were purchased when interest rates were much lower
Disagree. Trump gutted Dodd-Frank that would have protected against this.
False. The regulations would not have helped in this case. The adverse interest rate risk scenario in the stress tests were not severe enough and SVB would easily have met the liquidity requirement.
So should the regs that aren't in place but if they were wouldn't be good enough to prevent this just be more strict?
Anonymous wrote:I have no understanding of banking, but when you see all the shares of stock sold by those in charge over the last month, something really, really smells.
Anonymous wrote:Anonymous wrote:Anonymous wrote:So there are all of these libertarians etc calling on the Fed/FDIC to basically take over and secure the bank.
Keep in mind, this i only happening because Trump totally gutted regulations that would have prevented this from happening. So we are going to get a massive bailout for Silicon Valley Bank and yet people complain about a few thousand dollars in bailouts for student loans.
For one, the FDIC already took over the bank around 24 hours ago
Two, this is not caused by Trump gutting regulations. The cause was interest rate risk- recall people deposit money at banks and they turn around and lend money, in this case in the form of MBS and treasuries. The fed kept interest rates too low for too long and then they hiked rates precipitously, which caused huge losses for the bank on those securities that were purchased when interest rates were much lower
Disagree. Trump gutted Dodd-Frank that would have protected against this.
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:So there are all of these libertarians etc calling on the Fed/FDIC to basically take over and secure the bank.
Keep in mind, this i only happening because Trump totally gutted regulations that would have prevented this from happening. So we are going to get a massive bailout for Silicon Valley Bank and yet people complain about a few thousand dollars in bailouts for student loans.
For one, the FDIC already took over the bank around 24 hours ago
Two, this is not caused by Trump gutting regulations. The cause was interest rate risk- recall people deposit money at banks and they turn around and lend money, in this case in the form of MBS and treasuries. The fed kept interest rates too low for too long and then they hiked rates precipitously, which caused huge losses for the bank on those securities that were purchased when interest rates were much lower
Disagree. Trump gutted Dodd-Frank that would have protected against this.
False. The regulations would not have helped in this case. The adverse interest rate risk scenario in the stress tests were not severe enough and SVB would easily have met the liquidity requirement.